Japan labor shortage intensifies reliance on foreign workers

Japan is facing an intensifying labor shortage as companies increasingly rely on foreign nationals to combat a shrinking and aging population. A government survey by the labor ministry revealed that 68.2% of companies hired foreign workers specifically to ease labor shortages, a trend consistent since 2023.

In the restaurant sector, a suspension on bringing in new foreign workers from abroad has shifted the competition for labor. Employers are now forced to compete for the existing pool of foreign residents already living in Japan. This has intensified the struggle between rural areas and metropolitan centers like Tokyo, as workers are drawn to the larger cities where job availability and competitive conditions are higher. Mynavi Global reported that the volume of job openings for specific skilled workers in the restaurant sector increased 2.6 times following the announcement of the suspension.

Despite efforts by Prime Minister Sanae Takaichi to tighten rules for non-Japanese residents, the economic necessity of overseas labor remains high. Reports from Teikoku Databank indicate that more than half of surveyed companies lack sufficient full-time staff, while nearly 30% lack enough non-regular staff. The national jobless rate fell to 2.4% in July, reflecting the tight labor market.